FCR Documents represent a relationship between a Broker and a Client. Fee Schedules representing this relationship are attached to the FCR Document by the creator of the Document. Both Brokers and Clients can create a FCR Document dependent on the party's service level subscription. Full Service users always have access to initiate documents. Approvals from both parties are required for a FCR Document to reach a Published (final) state.
Initiate FCR Document
To create a FCR Document, select Initiate under the Documents menu. User should select Fees & Commissions Schedule (FCS) option to initiate.
The template selected determines the following
- Futures- Broker managed rates: document initiated by Broker party
- Futures- Client managed rates: document initiated by Client party
Next, the parties for the document are selected. Brokers will only be able to initiate Documents with clients who have set their broker party within their party's "Approved Brokers" list.
Creator Workflow & Approvals
Once Initiated, the Document moves to Composition state.
During Composition the creator of the Document will complete the workstreams on the Document. The creator also has the option to edit the Document's Effective dates.
MEMO Workstream (applies only to Broker managed rates)
-Sales Contact: The sales contacts are set at the Party level within the Manage Party page
-Notes: The Notes section is set up within the Manage Party page. User can create/ edit the default Note.
RATE SCHEDULES Workstream
-Attach Fee Schedule from Rate Schedule library or begin with a blank template. When attaching a scheduled from the Rate Schedule library, only templates belonging to the party on the document will populate as an option to attach.
When attaching the schedule a type (Cost+ or All In) and service type (Full Service, Executing Only or Clearing Only) must be defined.
Full Service: fee and commission schedule containing both execution and clearing commissions, exchange fees and clearing fees
Executing Only: fee and commission schedule containing only execution commissions and exchange fees charged to the execution broker
Clearing Only: fee and commission schedule containing only clearing commissions, exchange fees charged to the clearing broker and clearing fees
FCR will populate the Exchange Fee and Clearing Fee per rate line based on the Client's Exchange Membership. The Client manages their party's exchange membership in Manage Parties page. If the Client is not an active FCR party then the Broker can set memberships. These memberships can be applied and updated by selecting the "Memberships" button when viewing the rate schedule which opens a list of exchanges specific to the rate schedule where the Broker can select a membership type.
-The Interest Rate Schedule applies only to Broker managed rates. A default Interest Rate schedule can be set up at the party level in the Mange Party page or uploaded in the workstream. This schedule is optional unless the party makes an Interest Rate schedule a requirement in the Manage Party page.
A Document will be available to Send for Approval once composition is complete on required workstreams and they show as "Ready".
Next, the creator of the Document will send the Document for Approval.
Parties have the option of setting up their party to require two different users to action the document in order for it to be approved. This means that the user sending the document for Approval cannot also Approve the document in the Internal Review state.
Post Composition, the Document moves to Internal Review state.
During this state GUAs associated with the parties on the document will populate in this Underlying Give-Up Agreement workstream. These are the GUAs eligible for Rate Sync once the Document reaches a Published state.
The creator of the Document reviews the for final Approval.
-If the Party is a RateSync or Full Service subscriber, an option to Approve the GUA Rate Schedule Workstream when brokerage rates are applied to underlying GUAs is also available in this approval step. The user must have GUA Approval for Rate Workstream for the Approval to sync to underlying GUAs.
The creator also has the option to Reject the Document returning the document to Composition state.
Once approved the Document moves to Counterparty Review. The counterparty or receiver of the Document will complete the counterparty approval workflow to reach a Published state.